Payment Protection Insurance Information
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Most conscientious loan borrowers will often worry about what they would do in the event they were unable to work due to injury, illness or if their current position at work becomes redundant. There is actually something called PPI which was created for these types of circumstances.
The abbreviation PPI represents Payment Protection Insurance. This form of insurance was established to help cover the repayment of bills such as a mortgage loan, credit card repayment, or other monthly loans in case you are injured or are unable to work due to illness or as a result of redundancy. The PPI covers a percentage of certain loans monthly for up to 12 months and at most up to twenty-four months.
Prior to deciding on purchasing PPI you must be sure that it is well suited for you. You do not want to become victim to a high pressured sales associate or lender whom is attempting to push you into purchasing their plans.
It is also crucial that you be aware that there is quite a bit of criteria you will need to meet if you ever do need to file a PPI claim. Please find a few of these below:
* It is important to list any pre-existing medical conditions. Some companies will likely not even sell you the PPI if they are aware of them. Safer to know upfront.
* Your age has to be between 18 and 65.
* You must work at least sixteen hours weekly.
* If you are going to claim unemployment you must have been employed with the same employer for a minimum of 12 months prior to making the PPI claim.
You should also know that some medical conditions including back issues or even stress related issues may not be covered under the PPI policy. Be sure to ask this. You would hate to need to file a claim only to find out you would not be covered.
There has been quite a bit of problems over the years with loan companies attempting to pressure prospective borrowers into buying high priced payment protection insurance from them. They many times have promised lower rates, or said that if the borrower did not purchase the PPI then they might be denied the credit. This is certainly something for another article, however, this is now termed mis-sold PPI, which if you fell victim you may be able to reclaim some money back.
If you want to purchase Payment Protection Insurance and you think it is a good choice for you, make sure you check prices, as it may add up from 60-65% to the total of your loan. Be wary of high pressure tactics, and beware of poor sales practices.
Article Source: Articlelogy.com
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